Method and system for conversion of digital assets to fiat currency

ABSTRACT

A method for conversion of digital assets to fiat currency using a secondary blockchain and mirrored accounting includes: receiving transaction data corresponding to a first blockchain transaction processed using a first blockchain, the transaction data including a payer identifier, recipient identifier, and blockchain currency amount; validating an entity as an authorized entity associated with the payer identifier; determining a fiat currency amount based on the blockchain currency amount; generating a second blockchain transaction, the second blockchain transaction including an unspent transaction output, destination address associated with the authorized entity, and the blockchain currency amount and/or the fiat currency amount; confirming addition of the second blockchain transaction to a second blockchain; and initiating a transfer for the fiat currency amount from a first transaction account to a second transaction account, the second transaction account being associated with the authorized entity.

FIELD

The present disclosure relates to the conversion of digital assets tofiat currency, specifically the use of a secondary blockchain andmirrored accounting to enable reliable and auditable conversion of adigital asset to a fiat currency.

BACKGROUND

Blockchain was initially created as a storage mechanism for use inconducting payment transactions with a cryptographic currency. Using ablockchain provides a number of benefits, such as decentralization,distributed computing, transparency regarding transactions, and yet alsoproviding anonymity as to the individuals or entities involved in atransaction. One of the more popular aspects of a blockchain is that itis an immutable record: every transaction ever that is part of the chainis stored therein and cannot be changed due to the computationalrequirements and bandwidth limitations, particularly as a chain getslonger and a blockchain network adds more nodes.

Transactions conducted using a blockchain are made via an exchange of adigital asset associated with that blockchain, such as Bitcoin,Ethereum, etc. Many merchants may be willing to cater to consumers byoffering to accept payment via such a digital asset. However, withcurrent methods it is significantly more difficult for a merchant toexchange their digital assets for a fiat currency than it is forexchanging different fiat currencies. Most often, conversion of digitalassets is performed using an exchange. A merchant or other interestedparty will transfer their digital assets to a wallet as directed by theexchange using a new blockchain transaction. The exchange will then paya corresponding amount in fiat currency to an account provided by themerchant or other interested party, minus a fee collected by theexchange.

Unfortunately, due to the technologies involved such processes can besignificantly time consuming, particularly due to the constraints ofmany public blockchains where the transfer of digital assets often takesplace. Additionally, exchanges are not regulated institutions and do nothave to provide any transparency or accountability, which can result inmerchants being taken advantage of or being apprehensive to acceptdigital asset payments due to the difficulties and dangers in convertingtheir assets to fiat currency. Thus, there is a need for a moreefficient, secure, and trustworthy conversion of digital assets to fiatcurrency.

SUMMARY

The present disclosure provides a description of systems and methods forconversion of digital assets to fiat currency using a secondaryblockchain and mirrored accounting. A computing device monitorstransactions that are performed using a blockchain, which may be apublic blockchain, for transfers of digital assets. When a merchant orother registered entity makes a transaction using a known account usedfor conversion, the computing device may detect such a transaction andinitiate a conversion process. The conversion process may includevalidating the identity of the recipient of the digital assets,determination of the equivalent fiat currency to be paid, and theconducting of a mirrored transaction on a secondary blockchain usingmirrored accounts. The secondary transaction may serve as an immutablerecord kept by the computing device for the digital asset conversion, toprovide for auditability of asset conversions. Once the secondarytransaction is confirmed, the computing device may initiate payment offiat currency for the determined amount to the recipient, resulting in asuccessful conversion for the recipient without the need for an exchangeand in a manner that is more trustworthy and efficient than intraditional systems.

A method for conversion of digital assets to fiat currency using asecondary blockchain and mirrored accounting includes: receiving, by areceiver of a computing device, transaction data corresponding to afirst blockchain transaction processed using a first blockchain, thetransaction data including at least a payer identifier, a recipientidentifier, and a blockchain currency amount; validating, by a processorof the computing device, an entity as an authorized entity associatedwith the payer identifier; determining, by the processor of thecomputing device, a fiat currency amount based on at least theblockchain currency amount; generating, by the processor of thecomputing device, a second blockchain transaction, the second blockchaintransaction including at least an unspent transaction output, adestination address associated with the authorized entity, and one ofthe blockchain currency amount and the fiat currency amount; confirming,by the processor of the computing device, addition of the secondblockchain transaction to a second blockchain; and initiating, by atransmitter of the computing device, a transfer for the fiat currencyamount from a first transaction account to a second transaction account,the second transaction account being associated with the authorizedentity.

A system for conversion of digital assets to fiat currency using asecondary blockchain and mirrored accounting includes: a computingdevice including a receiver receiving transaction data corresponding toa first blockchain transaction processed using a first blockchain, thetransaction data including at least a payer identifier, a recipientidentifier, and a blockchain currency amount, a processor validating anentity as an authorized entity associated with the payer identifier,determining a fiat currency amount based on at least the blockchaincurrency amount, generating a second blockchain transaction, the secondblockchain transaction including at least an unspent transaction output,a destination address associated with the authorized entity, and one ofthe blockchain currency amount and the fiat currency amount, andconfirming addition of the second blockchain transaction to a secondblockchain, and a transmitter initiating a transfer for the fiatcurrency amount from a first transaction account to a second transactionaccount, the second transaction account being associated with theauthorized entity.

BRIEF DESCRIPTION OF THE DRAWING FIGURES

The scope of the present disclosure is best understood from thefollowing detailed description of exemplary embodiments when read inconjunction with the accompanying drawings. Included in the drawings arethe following figures:

FIG. 1 is a block diagram illustrating a high-level system architecturefor conversion of digital assets to fiat currency in accordance withexemplary embodiments.

FIG. 2 is a block diagram illustrating the processing server of thesystem of FIG. 1 for conversion of digital assets to fiat currency inaccordance with exemplary embodiments.

FIGS. 3A-3C are a flow diagram illustrating a process for digital assetconversion processing in accordance with exemplary embodiments.

FIG. 4 is a flow chart illustrating an exemplary method for conversionof digital assets to fiat currency using a secondary blockchain andmirrored accounting in accordance with exemplary embodiments.

FIG. 5 is a block diagram illustrating a computer system architecture inaccordance with exemplary embodiments.

Further areas of applicability of the present disclosure will becomeapparent from the detailed description provided hereinafter. It shouldbe understood that the detailed description of exemplary embodiments areintended for illustration purposes only and are, therefore, not intendedto necessarily limit the scope of the disclosure.

DETAILED DESCRIPTION Glossary of Terms

Blockchain—A public ledger of all transactions of a blockchain-basedcurrency. One or more computing devices may comprise a blockchainnetwork, which may be configured to process and record transactions aspart of a block in the blockchain. Once a block is completed, the blockis added to the blockchain and the transaction record thereby updated.In many instances, the blockchain may be a ledger of transactions inchronological order or may be presented in any other order that may besuitable for use by the blockchain network. In some configurations,transactions recorded in the blockchain may include a destinationaddress and a currency amount, such that the blockchain records how muchcurrency is attributable to a specific address. In some instances, thetransactions are financial and others not financial, or might includeadditional or different information, such as a source address,timestamp, etc. In some embodiments, a blockchain may also oralternatively include nearly any type of data as a form of transactionthat is or needs to be placed in a distributed database that maintains acontinuously growing list of data records hardened against tampering andrevision, even by its operators, and may be confirmed and validated bythe blockchain network through proof of work and/or any other suitableverification techniques associated therewith. In some cases, dataregarding a given transaction may further include additional data thatis not directly part of the transaction appended to transaction data. Insome instances, the inclusion of such data in a blockchain mayconstitute a transaction. In such instances, a blockchain may not bedirectly associated with a specific digital, virtual, fiat, or othertype of currency.

Transaction Account—A financial account that may be used to fund atransaction, such as a checking account, savings account, creditaccount, virtual payment account, etc. A transaction account may beassociated with a consumer, which may be any suitable type of entityassociated with a payment account, which may include a person, family,company, corporation, governmental entity, etc. In some instances, atransaction account may be virtual, such as those accounts operated byPayPal®, etc.

Issuer—An entity that establishes (e.g., opens) a letter or line ofcredit in favor of a beneficiary, and honors drafts drawn by thebeneficiary against the amount specified in the letter or line ofcredit. In many instances, the issuer may be a bank or other financialinstitution authorized to open lines of credit. In some instances, anyentity that may extend a line of credit to a beneficiary may beconsidered an issuer. The line of credit opened by the issuer may berepresented in the form of a payment account and may be drawn on by thebeneficiary via the use of a payment card. An issuer may also offeradditional types of payment accounts to consumers as will be apparent topersons having skill in the relevant art, such as debit accounts,prepaid accounts, electronic wallet accounts, savings accounts, checkingaccounts, etc., and may provide consumers with physical or non-physicalmeans for accessing and/or utilizing such an account, such as debitcards, prepaid cards, automated teller machine cards, electronicwallets, checks, etc. In some instances, as used herein, the term“issuer” may refer to an apparatus or device of an issuer entity.

System for Conversion of Digital Assets to Fiat Currency

FIG. 1 illustrates a system 100 for the conversion of digital assets toa fiat currency using a secondary blockchain and mirrored accounting.

The system 100 may include a processing server 102. The processingserver 102, discussed in more detail below, may be configured to convertdigital assets, such as a blockchain currency used in transactions madevia a blockchain, to a fiat currency for merchants and other entitiesinvolved in digital asset transactions. In the system 100, two partiesmay agree to conduct a blockchain transaction using a blockchain for thetransfer of digital assets from one party two another. As illustrated inFIG. 1 , the blockchain transaction may take place between a senderdevice 104 as the payer and a receiver device 106 as the payee, wherethe devices represent the computing devices used to facilitate theblockchain transaction on behalf of entities.

The blockchain transaction itself may be processed via the use of ablockchain network 108. The blockchain network 108 may be comprised of aplurality of blockchain nodes 110. Each blockchain node 110 may be acomputing system, such as illustrated in FIG. 5 , discussed in moredetail below, that is configured to perform functions related to theprocessing and management of the blockchain, including the generation ofblockchain data values, verification of proposed blockchaintransactions, verification of digital signatures, generation of newblocks, validation of new blocks, and maintenance of a copy of theblockchain.

The blockchain may be a distributed ledger that is comprised of at leasta plurality of blocks. Each block may include at least a block headerand one or more data values. Each block header may include at least atimestamp, a block reference value, and a data reference value. Thetimestamp may be a time at which the block header was generated and maybe represented using any suitable method (e.g., UNIX timestamp,DateTime, etc.). The block reference value may be a value thatreferences an earlier block (e.g., based on timestamp) in theblockchain. In some embodiments, a block reference value in a blockheader may be a reference to the block header of the most recently addedblock prior to the respective block. In an exemplary embodiment, theblock reference value may be a hash value generated via the hashing ofthe block header of the most recently added block. The data referencevalue may similarly be a reference to the one or more data values storedin the block that includes the block header. In an exemplary embodiment,the data reference value may be a hash value generated via the hashingof the one or more data values. For instance, the block reference valuemay be the root of a Merkle tree generated using the one or more datavalues.

The use of the block reference value and data reference value in eachblock header may result in the blockchain being immutable. Any attemptedmodification to a data value would require the generation of a new datareference value for that block, which would thereby require thesubsequent block's block reference value to be newly generated, furtherrequiring the generation of a new block reference value in everysubsequent block. This would have to be performed and updated in everysingle blockchain node 110 in the blockchain network 108 prior to thegeneration and addition of a new block to the blockchain in order forthe change to be made permanent. Computational and communicationlimitations may make such a modification exceedingly difficult, if notimpossible, thus rendering the blockchain immutable.

In some embodiments, the blockchain may be used to store informationregarding blockchain transactions conducted between two differentblockchain wallets. A blockchain wallet may include a private key of acryptographic key pair that is used to generate digital signatures thatserve as authorization by a payer for a blockchain transaction, wherethe digital signature can be verified by the blockchain network 108using the public key of the cryptographic key pair. In some cases, theterm “blockchain wallet” may refer specifically to the private key. Inother cases, the term “blockchain wallet” may refer to a computingdevice (e.g., sender device 104 and receiver device 106) that stores theprivate key for use thereof in blockchain transactions. For instance,each computing device may each have their own private key for respectivecryptographic key pairs and may each be a blockchain wallet for use intransactions with the blockchain associated with the blockchain network.Computing devices may be any type of device suitable to store andutilize a blockchain wallet, such as a desktop computer, laptopcomputer, notebook computer, tablet computer, cellular phone, smartphone, smart watch, smart television, wearable computing device,implantable computing device, etc.

Each blockchain data value stored in the blockchain may correspond to ablockchain transaction or other storage of data, as applicable. Ablockchain transaction may consist of at least: a digital signature ofthe sender of currency (e.g., a sender device 104) that is generatedusing the sender's private key, a blockchain address of the recipient ofcurrency (e.g., a receiver device 106) generated using the recipient'spublic key, and a blockchain currency amount that is transferred orother data being stored. In some blockchain transactions, thetransaction may also include one or more blockchain addresses of thesender where blockchain currency is currently stored (e.g., where thedigital signature proves their access to such currency), as well as anaddress generated using the sender's public key for any change that isto be retained by the sender. Addresses to which cryptographic currencyhas been sent that can be used in future transactions are referred to as“output” addresses, as each address was previously used to captureoutput of a prior blockchain transaction, also referred to as “unspenttransactions,” due to there being currency sent to the address in aprior transaction where that currency is still unspent. In some cases, ablockchain transaction may also include the sender's public key, for useby an entity in validating the transaction. For the traditionalprocessing of a blockchain transaction, such data may be provided to ablockchain node 110 in the blockchain network 108, either by the senderor the recipient. The node may verify the digital signature using thepublic key in the cryptographic key pair of the sender's wallet and alsoverify the sender's access to the funds (e.g., that the unspenttransactions have not yet been spent and were sent to address associatedwith the sender's wallet), a process known as “confirmation” of atransaction, and then include the blockchain transaction in a new block.The new block may be validated by other nodes in the blockchain network108 before being added to the blockchain and distributed to all of theblockchain nodes 110 in the blockchain network 108 in traditionalblockchain implementations. In cases where a blockchain data value maynot be related to a blockchain transaction, but instead the storage ofother types of data, blockchain data values may still include orotherwise involve the validation of a digital signature.

In the system 100, the two entities may conduct a blockchain transactionfor digital assets from one entity to another using respective senderdevice 104 and receiver device 106. The transaction may be processed asdiscussed above using the blockchain of the blockchain network 108,referred to herein as a “first blockchain” or “primary blockchain.” Theentity that received the digital assets (e.g., represented in the system100 by the receiver device 106) may be interested in converting thosedigital assets to fiat currency. In order to initiate such a conversion,the receiver device 106 may submit a new blockchain transaction usingthe blockchain network 108 for transfer of the amount of digital assetsthe entity wishes to convert to a blockchain address associated with theprocessing server 102 or otherwise known to the processing server 102 asused for conversion. In some cases, blockchain addresses suitable forreceiving conversion transactions may be known to receiver devices 106(e.g., publicly available by the processing server 102 or otherwisecommunicated to the receiver device 106 previously). In other cases, thereceiver device 106 may request a blockchain address from the processingserver 102 using a suitable communication method (e.g., via anapplication programming interface, application program request, etc.),where the processing server 102 may generate such an address using apublic key of a blockchain wallet used to receive digital assets in theprimary blockchain associated with the blockchain network 108. Once thereceiver device 106 has the address, the receiver device 106 mayinitiate a blockchain transaction on the first blockchain for payment ofthe desired amount of digital assets to the blockchain address.

The processing server 102 may be configured to monitor activityinvolving any blockchain wallets used for digital asset conversion. Insome cases, the processing server 102 may be a blockchain node 110 inthe blockchain network 108 and may receive transaction data accordinglyfor monitoring of activity. In other cases, the primary blockchain maybe a public blockchain, where the processing server 102 may retrieveblocks and blockchain transaction data using an application programminginterface or other suitable method. In still other cases, one or moreblockchain nodes 110 may be configured to report blocks and/orblockchain transaction data to the processing server 102. In some suchinstances, the blockchain node(s) 110 may be provided with blockchainaddresses, blockchain wallet data, or other information for use inmonitoring, such as to only provide the processing server 102 withblockchain transaction data relevant to blockchain wallets of interestto the processing server 102 (e.g., those used for digital assetconversion).

When the processing server 102 detects that a transfer has been madefrom the receiver device 106 to a blockchain wallet for conversion, theprocessing server 102 may initiate its conversion process. Theconversion process may consist of four distinct steps: verification ofthe requesting entity, determination of the fiat currency amount,conducting of a secondary blockchain transaction, and payment of fiatcurrency.

In the first step, the processing server 102 may verify the identity ofthe entity that is requesting the conversion of digital assets, such asthe entity associated with the receiver device 106. The entity may beverified using any suitable method, such as a traditional “know yourcustomer” method. In some embodiments, the entity may be unknown to theprocessing server 102 prior to the request, where the verification mayinclude collecting relevant data from the entity and attempting toverify the entity. In other embodiments, the entity may be registeredwith the processing server 102 prior to requesting the conversion. Insuch an embodiment, the verification may be used to ensure that theentity requesting the conversion is the same as the registered entity,such as by providing a password, passcode, one-time password, or someother proof of identity. In some embodiments, the processing server 102may handle the verification directly. In other embodiments, a thirdparty 114 may be used. In such embodiments, the processing server 102may provide any data necessary to the third party 114, and the thirdparty 114 may perform a verification process and return a result to theprocessing server 102.

Any suitable data available to the processing server 102 may be used inthe verification. For instance, in cases where the entity has beenpreviously registered, the entity may have provided the processingserver 102 with identifying data or other information that may be usedin the verification (e.g., provided to the third party 114 in theverification request). In some instances, the processing server 102 mayhave received or otherwise identified an identifier that is assigned tothe entity (e.g., to the receiver device 106 or the blockchain walletassociated therewith), where that identifier may be used in verificationprocesses. For example, the processing server 102 may have theidentifier associated with the blockchain wallet in a database thereinand may provide that identifier to the third party 114. In some suchcases, the processing server 102 may not possess any other dataidentifying the entity, such as to maintain anonymity and privacy forthe entity and may instead rely on the third party 114 for verification.

If the verification of the entity is unsuccessful, the processing server102 may refrain from performing the digital asset conversion. In somesuch cases, the processing server 102 may return the digital assets tothe receiver device 106 through a new blockchain transaction on thefirst blockchain. If the verification is successful, the processingserver 102 may continue on in its conversion process by determining theamount of fiat currency that is to be provided to the requesting entityas part of the conversion. The amount may be determined directly by theprocessing server 102 using an exchange rate or other available data ormay be determined by a third party 114 and provided to the processingserver 102 upon request. For example, the third party 114 may be anexchange that monitors and/or sets exchange rates for various fiatcurrencies and/or digital assets, and may provide the processing server102 with an exchange rate from the digital currency used by therequesting entity to its desired fiat currency or with the fiat currencyamount if provided the digital asset amount by the processing server102. In some cases, the fiat currency amount may be affected by fees,rules and regulations of applicable jurisdictions, applicable laws, etc.For instance, laws or regulations may limit the amount of digital assetsthat may be converted or fiat currency that may be transferred. In someinstances, the amount of fiat currency being transferred may requirereporting or other actions to be taken by the processing server 102 oran associated entity, such as based on government laws or regulations,which may be handled using methods and systems that will be apparent topersons having skill in the relevant art.

Once the fiat currency amount has been determined, the processing server102 may proceed to the next step in the conversion process: conducting asecondary blockchain transaction. In the system 100, a secondaryblockchain, also referred to herein as the “second blockchain,” may beutilized by the processing server 102 to serve as a record of alldigital asset conversion transactions. In some instances, the secondaryblockchain may be a private blockchain or a permissioned blockchain,where the processing server 102 may be a blockchain node configured toperform functions related to the secondary blockchain.

The secondary blockchain may be used by the processing server 102 tomirror the digital asset conversion transactions that are processedusing the first blockchain. The processing server 102 may establishmirrored accounts for use in the secondary blockchain, where eachmirrored account is a blockchain wallet that directly corresponds to ablockchain wallet that operates using the primary blockchain. Forinstance, in the above example, the processing server 102 may have afirst mirrored account for the blockchain wallet of the receiver device106 used to transfer digital assets and a second mirrored account forthe blockchain wallet of the processing server 102 that is used toreceive the digital assets. The mirrored accounts may be maintained bythe processing server 102 and used for record keeping. In instanceswhere entities are registered with the processing server 102 prior torequesting digital asset conversion, the processing server 102 maycreate the mirrored account for an entity during the registrationprocess. The processing server 102 may maintain records, such as accountprofiles stored therein, that directly associated an entity and/orblockchain wallet with its mirrored account (e.g., the correspondingblockchain wallet in the secondary blockchain).

When a digital asset conversion is requested, the processing server 102may identify the mirrored accounts for the payer and payee in thedigital asset conversion transaction conducted using the firstblockchain. The processing server 102 may then generate a blockchaintransaction for the secondary blockchain that mirrors the transactionthat was added to the primary blockchain. In some embodiments, thesecondary transaction may include a transfer of digital assets thatmirrors (e.g., with the same value or an equivalent value) the transfermade in the primary blockchain. In other embodiments, the secondaryblockchain may not be used for any digital asset transfer but mayinstead be used as an immutable record. For instance, the transactiongenerated for the secondary blockchain may be used to store dataregarding the transaction conducted using the primary blockchain. Suchdata may include, for instance, the identity or other data associatedwith the requesting entity (e.g., of the receiver device 106) and thedigital asset amount and/or fiat currency amount. In some cases,additional data may be stored therein, such as a timestamp from theinitial blockchain transaction on the primary blockchain, informationassociated with the blockchain wallet used to receive the digitalassets, exchange rate, third party 114 that performed the verificationand/or fiat currency determination, etc.

The processing server 102 may generate the mirror blockchain transactionand include the mirror blockchain transaction in a new block that isgenerated thereby. The new block may then be confirmed and added to thesecondary blockchain using traditional methods and systems. Once theprocessing server 102 confirms that the mirror blockchain transactionhas been added to the secondary blockchain, the processing server 102may proceed with the final step in the conversion process by initiatinga transfer of the determined amount of fiat currency to a transactionaccount associated with the entity that requested the transfer. In somecases, the transaction account may be identified by the requestingentity during registration or during the process of verifying therequesting entity's identity. In other cases, the processing server 102may request information for the transaction account from the receiverdevice 106 once the mirror blockchain transaction is confirmed. Thetransfer may be of the determined amount of fiat currency from atransaction account specified by the processing server 102 to thetransaction account of the requesting entity. For example, therequesting entity may have a transaction account issued thereto by afinancial institution 112. The financial institution 112 may provide therequesting entity with a transaction account number, routinginformation, or other data used for the transfer of fiat currency tothat transaction account. The requesting entity may provide such data tothe processing server 102 for the transfer of fiat currency. Thetransfer may be performed using any suitable method, such as a wiretransfer, automated clearing house transfer, etc.

In some cases, the processing server 102 may utilize multipletransaction accounts, where each may be associated with a blockchainwallet and/or address used to receive digital asset conversion requestsin the primary blockchain. For example, the processing server 102 mayhave a mirrored transaction account for each blockchain wallet itutilizes in the primary blockchain, along with a mirrored blockchainwallet in the secondary blockchain. In other embodiments, the processingserver 102 may use a single transaction account for all fiat currencytransfers. Once the transfer is complete, the requesting entity may thenhave their fiat currency, while the processing server 102 or otherassociated entity may have control of the corresponding digital assetsin the primary blockchain.

The methods and systems discussed herein provide for efficient andsecure conversion of digital assets to fiat currency. Mirroredaccounting is used to establish an immutable record of all digital assetconversions using a secondary blockchain, which ensures fullaccountability and transparency. By utilizing the secondary blockchain,the immutable record ensures that any transfer can be audited and thatthere can be no fraud in the process. This is further secured byrequiring verification of the entity that requests the digital assetconversion, to ensure that only an authorized (e.g., and registered, asrequired) entity is performing the conversion and will be receiving fiatcurrency. Thus, by using mirrored accounting and entity verification,any entity participating in the system 100 can be assured of a secureand trustworthy conversion of their digital assets with a significantimprovement over legacy systems.

Processing Server

FIG. 2 illustrates an embodiment of the processing server 102 in thesystem 100. It will be apparent to persons having skill in the relevantart that the embodiment of the processing server 102 illustrated in FIG.2 is provided as illustration only and may not be exhaustive to allpossible configurations of the processing server 102 suitable forperforming the functions as discussed herein. For example, the computersystem 500 illustrated in FIG. 5 and discussed in more detail below maybe a suitable configuration of the processing server 102.

The processing server 102 may include a receiving device 202. Thereceiving device 202 may be configured to receive data over one or morenetworks via one or more network protocols. In some instances, thereceiving device 202 may be configured to receive data sender devices104, receiver devices 106, blockchain nodes 110, financial institutions112, third parties 114, and other systems and entities via one or morecommunication methods, such as radio frequency, local area networks,wireless area networks, cellular communication networks, Bluetooth, theInternet, etc. In some embodiments, the receiving device 202 may becomprised of multiple devices, such as different receiving devices forreceiving data over different networks, such as a first receiving devicefor receiving data over a local area network and a second receivingdevice for receiving data via the Internet. The receiving device 202 mayreceive electronically transmitted data signals, where data may besuperimposed or otherwise encoded on the data signal and decoded,parsed, read, or otherwise obtained via receipt of the data signal bythe receiving device 202. In some instances, the receiving device 202may include a parsing module for parsing the received data signal toobtain the data superimposed thereon. For example, the receiving device202 may include a parser program configured to receive and transform thereceived data signal into usable input for the functions performed bythe processing device to carry out the methods and systems describedherein.

The receiving device 202 may be configured to receive data signalselectronically transmitted by sender devices 104, receiver devices 106,and/or blockchain nodes 110 that may be superimposed or otherwiseencoded with new transactions for confirmation, confirmed blockchaintransactions, new blocks for confirmation, confirmed blocks for additionto the blockchain, messages regarding block confirmations, blockchainhash values, etc. The receiving device 202 may also be configured toreceive data signals electronically transmitted by sender devices 104and/or receiver devices 106, which may be superimposed or otherwiseencoded with registration data, transaction account information, andother data used in digital asset conversions as discussed above. Thereceiving device 202 may also be configured to receive data signalselectronically transmitted by third parties 114, which may besuperimposed or otherwise encoded with identity verification data orresults, fiat currency amounts, fiat currency exchange rates, etc.

The processing server 102 may also include a communication module 204.The communication module 204 may be configured to transmit data betweenmodules, engines, databases, memories, and other components of theprocessing server 102 for use in performing the functions discussedherein. The communication module 204 may be comprised of one or morecommunication types and utilize various communication methods forcommunications within a computing device. For example, the communicationmodule 204 may be comprised of a bus, contact pin connectors, wires,etc. In some embodiments, the communication module 204 may also beconfigured to communicate between internal components of the processingserver 102 and external components of the processing server 102, such asexternally connected databases, display devices, input devices, etc. Theprocessing server 102 may also include a processing device. Theprocessing device may be configured to perform the functions of theprocessing server 102 discussed herein as will be apparent to personshaving skill in the relevant art. In some embodiments, the processingdevice may include and/or be comprised of a plurality of engines and/ormodules specially configured to perform one or more functions of theprocessing device, such as a querying module 214, generation module 216,validation module 218, etc. As used herein, the term “module” may besoftware or hardware particularly programmed to receive an input,perform one or more processes using the input, and provides an output.The input, output, and processes performed by various modules will beapparent to one skilled in the art based upon the present disclosure.

The processing server 102 may include an account database 206. Theaccount database 206 may be configured to store a plurality of accountprofiles 208 using a suitable data storage format and schema. Theaccount database 206 may be a relational database that utilizesstructured query language for the storage, identification, modifying,updating, accessing, etc. of structured data sets stored therein. Eachaccount profile 208 may be a structured data set configured to storedata related to one or more registered accounts. For instance, anaccount profile 208 may be associated with a blockchain wallet for theprimary blockchain and may include identifiers and/or keys for theassociated blockchain wallet as well as data for any mirrored accounts.For example, an account profile 208 may include keys, addresses, and/oridentifiers for a mirrored blockchain wallet for the secondaryblockchain, account identifiers and other data for a transaction accountused for the receipt or transfer of fiat currency, etc.

The processing server 102 may also include blockchain data 210, whichmay be stored in a memory 212 of the processing server 102 or stored ina separate area within the processing server 102 or accessible thereby.The blockchain data 210 may include a secondary blockchain, which may becomprised of a plurality of blocks, and, in some cases, may also includea primary blockchain associated with the blockchain network 108. In somecases, the blockchain data 210 may further include any other dataassociated with the blockchain and management and performance thereof,such as block generation algorithms, digital signature generation andconfirmation algorithms, communication data for blockchain nodes 110,etc.

The processing server 102 may also include a memory 212. The memory 212may be configured to store data for use by the processing server 102 inperforming the functions discussed herein, such as public and privatekeys, symmetric keys, etc. The memory 212 may be configured to storedata using suitable data formatting methods and schema and may be anysuitable type of memory, such as read-only memory, random access memory,etc. The memory 212 may include, for example, encryption keys andalgorithms, communication protocols and standards, data formattingstandards and protocols, program code for modules and applicationprograms of the processing device, and other data that may be suitablefor use by the processing server 102 in the performance of the functionsdisclosed herein as will be apparent to persons having skill in therelevant art. In some embodiments, the memory 212 may be comprised of ormay otherwise include a relational database that utilizes structuredquery language for the storage, identification, modifying, updating,accessing, etc. of structured data sets stored therein. The memory 212may be configured to store, for example, cryptographic keys, salts,nonces, communication information, address generation and validationalgorithms, digital signature generation and validation algorithms,hashing algorithms for generating reference values, rules regardinggeneration of new blocks and block headers, hash values, mirroredtransaction account and blockchain wallet data, rules and regulationsfor digital asset conversions, exchange rates, etc.

The processing server 102 may include a querying module 214. Thequerying module 214 may be configured to execute queries on databases toidentify information. The querying module 214 may receive one or moredata values or query strings and may execute a query string basedthereon on an indicated database, such as the memory 212 of theprocessing server 102 to identify information stored therein. Thequerying module 214 may then output the identified information to anappropriate engine or module of the processing server 102 as necessary.The querying module 214 may, for example, execute a query on the accountdatabase 206 to identify an account profile 208 associated with ablockchain wallet that made a transfer in the primary blockchain toinitiate a digital asset conversion, such as to identify mirroredaccount information for conducting a secondary blockchain transactionand the transfer of fiat currency.

The processing server 102 may also include a generation module 216. Thegeneration module 216 may be configured to generate data for use by theprocessing server 102 in performing the functions discussed herein. Thegeneration module 216 may receive instructions as input, may generatedata based on the instructions, and may output the generated data to oneor more modules of the processing server 102. For example, thegeneration module 216 may be configured to generate new blockchain datavalues, new block headers, Merkle roots, new blocks, and other data foroperation of the blockchain, as well as generate fiat currency amountsusing exchange rate data, generate new cryptographic key pairs duringaccount registration, etc.

The processing server 102 may also include a validation module 218. Thevalidation module 218 may be configured to perform validations for theprocessing server 102 as part of the functions discussed herein. Thevalidation module 218 may receive instructions as input, which may alsoinclude data to be used in performing a validation, may perform avalidation as requested, and may output a result of the validation toanother module or engine of the processing server 102. The validationmodule 218 may, for example, be configured to confirm blockchaintransactions by analyzing blockchain data values in the blockchain toensure that a blockchain wallet is authorized to use the transactionoutputs included in the new transaction submission and that thetransaction outputs have not been previously used to transfer currencyin another transaction. In some cases, the validation module 218 mayalso be configured to verify the identity of a requesting entity, suchas using traditional know your customer methods or other suitableverification and authentication methods.

The processing server 102 may also include a transmitting device 220.The transmitting device 220 may be configured to transmit data over oneor more networks via one or more network protocols. In some instances,the transmitting device 220 may be configured to transmit data to senderdevices 104, receiver devices 106, blockchain nodes 110, financialinstitutions 112, third parties 114, and other entities via one or morecommunication methods, local area networks, wireless area networks,cellular communication, Bluetooth, radio frequency, the Internet, etc.In some embodiments, the transmitting device 220 may be comprised ofmultiple devices, such as different transmitting devices fortransmitting data over different networks, such as a first transmittingdevice for transmitting data over a local area network and a secondtransmitting device for transmitting data via the Internet. Thetransmitting device 220 may electronically transmit data signals thathave data superimposed that may be parsed by a receiving computingdevice. In some instances, the transmitting device 220 may include oneor more modules for superimposing, encoding, or otherwise formattingdata into data signals suitable for transmission.

The transmitting device 220 may be configured to electronically transmitdata signals to blockchain nodes 110 that are superimposed or otherwiseencoded with new blockchain data values, new blocks for confirmation,confirmed blocks, messages regarding block or transaction confirmations,hash values, and other data used in the operation and management ofblockchains. The transmitting device 220 may also be configured toelectronically transmit data signals to sender devices 104 and/orreceiver devices 106, which may be superimposed or otherwise encodedwith confirmation requests, notifications regarding transactionprocessing, requests for registration data, account identificationrequests, fiat currency determinations, etc. The transmitting device 220may also be configured to electronically transmit data signals tofinancial institutions 112, such as may be superimposed or otherwiseencoded with fiat currency transfer requests or data associatedtherewith. The transmitting device 220 may also be configured toelectronically transmit data signals to third parties 114 that may besuperimposed or otherwise encoded with entity verification requests,fiat currency determination requests, exchange rate requests, etc.

Digital Asset Conversion Processing Flow

FIGS. 3A-3C illustrate a digital asset conversion processing flow forthe conversion of digital assets to fiat currency in the system 100 viathe use of mirrored accounting and a secondary blockchain.

In step 302, the receiver device 106 may generate a blockchain addressusing the public key of its blockchain wallet and transmit theblockchain address to a sender device 104 for the collection of paymentusing a digital asset in a first blockchain. The sender device 104 maythen submit a blockchain transaction to the first blockchain (e.g., viaa blockchain node 110 in the blockchain network 108), which may resultin, in step 304, the receiver device 106 receiving (e.g., via itsblockchain wallet) digital assets as payment from the sender device 104.The receiver device 106 may then have possession of those digital assetson the first blockchain through the output of the first transaction. Instep 306, the receiver device 106 may submit a second blockchaintransaction to the primary blockchain (e.g., to a blockchain node 110 inthe blockchain network 108) for payment of an amount of digital assetsto a blockchain address associated with digital asset conversion, suchas may be provided by the processing server 102 (e.g., publicly or tothe receiver device 106 during a registration process). The secondtransaction may utilize the unspent transaction output from the firsttransaction, and any other unspent transaction outputs as desired by therequesting entity associated with the receiver device 106, to transfer adesired amount of digital assets to the blockchain address associatedwith digital conversion. The second blockchain transaction may besubmitted to the blockchain network 108 and added to the primaryblockchain using traditional methods and systems.

In step 308, the receiving device 202 of the processing server 102 mayreceive transaction data for the second blockchain transaction, such asfrom a blockchain node 110 either directly or within a block provided bythereby. The transaction data may include at least the blockchainaddress, digital asset amount transferred thereto, and an identifierassociated with the payer, also referred to herein as a “payeridentifier.” In step 310, the processing server 102 may identify theentity requesting the digital asset conversion. For instance, thequerying module 214 of the processing server 102 may execute a query onthe account database 206 of the processing server 102 to identify anaccount profile 208 that includes the payer identifier, which may havean entity identifier or other data associated with the requestingentity. In step 312, the transmitting device 220 of the processingserver may electronically transmit the entity identifier, payeridentifier, or other data to a third party 114 for validation of therequesting entity using a suitable communication network and method.

In step 314, the third party 114 may receive the validation request. Instep 316, the third party 114 may validate the identity of therequesting entity as being genuine, such as to ensure that therequesting entity is the proper entity associated with the receiverdevice 106 and registered with the processing server 102, or tootherwise ensure that fraud is not being perpetuated using any suitablemethod as will be apparent to persons having skill in the relevant art.In some embodiments, the third party 114 may, in step 318, contact thereceiver device 106 as part of the validation process to verify therequesting entity and the authenticity thereof. In some instances, thevalidation may include ensuring that the receiver device 106 is notcompromised. In step 320, the third party 114 may transmit a result ofthe validation process (e.g., that the requesting entity is who theypurport to be or who was registered to the receiver device 106previously) to the processing server 102. In step 322, the receivingdevice 202 of the processing server 102 may receive the validationresult from the third party 114.

In step 324, the processing server 102 may identify the transactionaccount to which the requesting entity would like the fiat currencytransferred. Such an identification may be performed by identifytransaction account information in the previously identified accountprofile 208 or may, in some cases, include requesting such informationfrom the receiver device 106 by the transmitting device 202. In step326, the processing server 102 may determine the fiat currency amountfor the transfer, which may be based on the digital asset amountincluded in the second blockchain transaction. In some instances, thegeneration module 216 of the processing server 102 may determine thefiat currency amount by applying an exchange rate (e.g., stored in thememory 212) to the digital asset amount. In other instances, a thirdparty 114 may be used where the transmitting device 220 of theprocessing server 102 may electronically transmit the digital assetamount thereto and receive, by the receiving device 202, the fiatcurrency amount, or may request an exchange rate from the third party114 for use by the generation module 216 in determining the fiatcurrency amount.

In step 328, the generation module 216 of the processing server 102 maygenerate a third blockchain transaction to be added to the secondaryblockchain. The third blockchain transaction may include at least thefiat currency amount and mirrored account information for the receiverdevice 106 and/or requesting entity. In some instances, the thirdblockchain transaction may further include at least one of: mirroredaccount information for the blockchain address used as recipient in thesecond blockchain transaction, transaction account information, thedigital asset amount, exchange rate data, entity verification results,etc. In step 330, the transmitting device 220 of the processing server102 may electronically transmit the generated third blockchaintransaction to another blockchain node, e.g., the blockchain node 110that participates in the secondary blockchain.

In step 332, the blockchain node 300, or any node on the secondaryblockchain, may receive the third blockchain transaction and, in step334, may generate a new block that includes the third blockchaintransaction. The new block may be confirmed the using traditionalmethods and systems, such as ensuring that the reference values arecorrect. In step 336, the blockchain node 300 may electronicallytransmit a confirmation message to the processing server 102, which mayindicate that the new block is confirmed. In step 338, the receivingdevice 202 of the processing server 102 may receive the confirmationmessage from the blockchain node 300. The new block may then be added tothe secondary blockchain, which may result in the third blockchaintransaction being successfully added to the secondary blockchain. Insome cases, the processing server 102 may be required to receive aconfirmation message from a majority or other specified amount of otherblockchain nodes 300 for the new block to be added to the blockchain. Instep 340, the transmitting device 220 of the processing server 102 maythen initiate the transfer of the determined amount of fiat currency tothe transaction account specified by the requesting entity, such as bysubmitting a request to a financial institution 112 or other entity thatcan affect the transfer for the provided amount of fiat currency from atransaction account specified by the processing server 102 to therequesting entity's transaction account. In step 342, the requestingentity may receive a notification via the receiver device 106 that thefiat currency transfer was completed successfully, such as may beprovided by the processing server 102, their financial institution 112,and entity that performed the transfer, etc.

Exemplary Method for Conversion of Digital Assets

FIG. 4 illustrates a method 400 for the conversion of digital assets tofiat currency using a secondary blockchain and mirrored accounting.

In step 402, transaction data corresponding to a first blockchaintransaction processed using a first blockchain may be received by areceiver (e.g., receiving device 202) of a computing device (e.g.,processing server 102), the transaction data including at least a payeridentifier, a recipient identifier, and a blockchain currency amount. Instep 404, an entity may be validated by a processor (e.g., validationmodule 218) of the computing device as an authorized entity associatedwith the payer identifier. In step 406, a fiat currency amount may bedetermined by the processor (e.g., generation module 216) of thecomputing device based on at least the blockchain currency amount.

In step 408, a second blockchain transaction may be generated by theprocessor (e.g., generation module 216) of the computing device, thesecond blockchain transaction including at least an unspent transactionoutput, a destination address associated with the authorized entity, andone of the blockchain currency amount and the fiat currency amount. Instep 410, addition of the second blockchain transaction to a secondblockchain may be confirmed by the processor (e.g., validation module218) of the computing device. In step 412, a transfer for the firstcurrency amount may be initiated by a transmitter (e.g., transmittingdevice 220) of the computing device from a first transaction account toa second transaction account, the second transaction account beingassociated with the authorized entity.

In one embodiment, the first blockchain may be a public blockchain, andthe second blockchain may be a permissioned blockchain. In someembodiments, validating the entity as an authorized entity may include:transmitting, by the transmitter of the computing device, at least thepayer identifier or a secondary identifier associated with the recipientidentifier to a third party (e.g., third party 114); and receiving, bythe receiver of the computing device, an indication of a successfulvalidation of the authorized entity from the third party. In oneembodiment, the method 400 may further include identifying, by theprocessor of the computing device, the second transaction account basedon the payer identifier.

In some embodiments, the method 400 may also include: storing, in amemory (e.g., memory 212) of the computing device, a private key of acryptographic key pair; and generating, by the processor (e.g.,generation module 216) of the computing device, a digital signatureusing the private key, wherein the digital signature is included in thesecond blockchain transaction. In a further embodiment, the private keymay be associated with the first transaction account. In one embodiment,the method 400 may further include generating, by the processor (e.g.,generation module 216) of the computing device, a new block for thesecond blockchain, the new block including at least a block header andone or more new blockchain transactions, the one or more new blockchaintransactions including at least the second blockchain transaction. In afurther embodiment, the method 400 may even further includetransmitting, by the transmitter of the computing device, the generatednew block to one or more nodes in a blockchain network, whereinconfirming addition of the second blockchain transaction to the secondblockchain includes receiving, by the receiver of the computing device,a confirmation message from a majority of the one or more nodes in theblockchain network.

Computer System Architecture

FIG. 5 illustrates a computer system 500 in which embodiments of thepresent disclosure, or portions thereof, may be implemented ascomputer-readable code. For example, the processing server 102 of FIGS.1 and 2 may be implemented in the computer system 500 using hardware,non-transitory computer readable media having instructions storedthereon, or a combination thereof and may be implemented in one or morecomputer systems or other processing systems. Hardware may embodymodules and components used to implement the methods of FIGS. 3A-3C and4 .

If programmable logic is used, such logic may execute on a commerciallyavailable processing platform configured by executable software code tobecome a specific purpose computer or a special purpose device (e.g.,programmable logic array, application-specific integrated circuit,etc.). A person having ordinary skill in the art may appreciate thatembodiments of the disclosed subject matter can be practiced withvarious computer system configurations, including multi-coremultiprocessor systems, minicomputers, mainframe computers, computerslinked or clustered with distributed functions, as well as pervasive orminiature computers that may be embedded into virtually any device. Forinstance, at least one processor device and a memory may be used toimplement the above described embodiments.

A processor unit or device as discussed herein may be a singleprocessor, a plurality of processors, or combinations thereof. Processordevices may have one or more processor “cores.” The terms “computerprogram medium,” “non-transitory computer readable medium,” and“computer usable medium” as discussed herein are used to generally referto tangible media such as a removable storage unit 518, a removablestorage unit 522, and a hard disk installed in hard disk drive 512.

Various embodiments of the present disclosure are described in terms ofthis example computer system 500. After reading this description, itwill become apparent to a person skilled in the relevant art how toimplement the present disclosure using other computer systems and/orcomputer architectures. Although operations may be described as asequential process, some of the operations may in fact be performed inparallel, concurrently, and/or in a distributed environment, and withprogram code stored locally or remotely for access by single ormulti-processor machines. In addition, in some embodiments the order ofoperations may be rearranged without departing from the spirit of thedisclosed subject matter.

Processor device 504 may be a special purpose or a general-purposeprocessor device specifically configured to perform the functionsdiscussed herein. The processor device 504 may be connected to acommunications infrastructure 506, such as a bus, message queue,network, multi-core message-passing scheme, etc. The network may be anynetwork suitable for performing the functions as disclosed herein andmay include a local area network (LAN), a wide area network (WAN), awireless network (e.g., WiFi), a mobile communication network, asatellite network, the Internet, fiber optic, coaxial cable, infrared,radio frequency (RF), or any combination thereof. Other suitable networktypes and configurations will be apparent to persons having skill in therelevant art. The computer system 500 may also include a main memory 508(e.g., random access memory, read-only memory, etc.), and may alsoinclude a secondary memory 510. The secondary memory 510 may include thehard disk drive 512 and a removable storage drive 514, such as a floppydisk drive, a magnetic tape drive, an optical disk drive, a flashmemory, etc.

The removable storage drive 514 may read from and/or write to theremovable storage unit 518 in a well-known manner. The removable storageunit 518 may include a removable storage media that may be read by andwritten to by the removable storage drive 514. For example, if theremovable storage drive 514 is a floppy disk drive or universal serialbus port, the removable storage unit 518 may be a floppy disk orportable flash drive, respectively. In one embodiment, the removablestorage unit 518 may be non-transitory computer readable recordingmedia.

In some embodiments, the secondary memory 510 may include alternativemeans for allowing computer programs or other instructions to be loadedinto the computer system 500, for example, the removable storage unit522 and an interface 520. Examples of such means may include a programcartridge and cartridge interface (e.g., as found in video gamesystems), a removable memory chip (e.g., EEPROM, PROM, etc.) andassociated socket, and other removable storage units 522 and interfaces520 as will be apparent to persons having skill in the relevant art.

Data stored in the computer system 500 (e.g., in the main memory 508and/or the secondary memory 510) may be stored on any type of suitablecomputer readable media, such as optical storage (e.g., a compact disc,digital versatile disc, Blu-ray disc, etc.) or magnetic tape storage(e.g., a hard disk drive). The data may be configured in any type ofsuitable database configuration, such as a relational database, astructured query language (SQL) database, a distributed database, anobject database, etc. Suitable configurations and storage types will beapparent to persons having skill in the relevant art.

The computer system 500 may also include a communications interface 524.The communications interface 524 may be configured to allow software anddata to be transferred between the computer system 500 and externaldevices. Exemplary communications interfaces 524 may include a modem, anetwork interface (e.g., an Ethernet card), a communications port, aPCMCIA slot and card, etc. Software and data transferred via thecommunications interface 524 may be in the form of signals, which may beelectronic, electromagnetic, optical, or other signals as will beapparent to persons having skill in the relevant art. The signals maytravel via a communications path 526, which may be configured to carrythe signals and may be implemented using wire, cable, fiber optics, aphone line, a cellular phone link, a radio frequency link, etc.

The computer system 500 may further include a display interface 502. Thedisplay interface 502 may be configured to allow data to be transferredbetween the computer system 500 and external display 530. Exemplarydisplay interfaces 502 may include high-definition multimedia interface(HDMI), digital visual interface (DVI), video graphics array (VGA), etc.The display 530 may be any suitable type of display for displaying datatransmitted via the display interface 502 of the computer system 500,including a cathode ray tube (CRT) display, liquid crystal display(LCD), light-emitting diode (LED) display, capacitive touch display,thin-film transistor (TFT) display, etc.

Computer program medium and computer usable medium may refer tomemories, such as the main memory 508 and secondary memory 510, whichmay be memory semiconductors (e.g., DRAMs, etc.). These computer programproducts may be means for providing software to the computer system 500.Computer programs (e.g., computer control logic) may be stored in themain memory 508 and/or the secondary memory 510. Computer programs mayalso be received via the communications interface 524. Such computerprograms, when executed, may enable computer system 500 to implement thepresent methods as discussed herein. In particular, the computerprograms, when executed, may enable processor device 504 to implementthe methods illustrated by FIGS. 3A-3C and 4 , as discussed herein.Accordingly, such computer programs may represent controllers of thecomputer system 500. Where the present disclosure is implemented usingsoftware, the software may be stored in a computer program product andloaded into the computer system 500 using the removable storage drive514, interface 520, and hard disk drive 512, or communications interface524.

The processor device 504 may comprise one or more modules or enginesconfigured to perform the functions of the computer system 500. Each ofthe modules or engines may be implemented using hardware and, in someinstances, may also utilize software, such as corresponding to programcode and/or programs stored in the main memory 508 or secondary memory510. In such instances, program code may be compiled by the processordevice 504 (e.g., by a compiling module or engine) prior to execution bythe hardware of the computer system 500. For example, the program codemay be source code written in a programming language that is translatedinto a lower level language, such as assembly language or machine code,for execution by the processor device 504 and/or any additional hardwarecomponents of the computer system 500. The process of compiling mayinclude the use of lexical analysis, preprocessing, parsing, semanticanalysis, syntax-directed translation, code generation, codeoptimization, and any other techniques that may be suitable fortranslation of program code into a lower level language suitable forcontrolling the computer system 500 to perform the functions disclosedherein. It will be apparent to persons having skill in the relevant artthat such processes result in the computer system 500 being a speciallyconfigured computer system 500 uniquely programmed to perform thefunctions discussed above.

Techniques consistent with the present disclosure provide, among otherfeatures, systems and methods for conversion of digital assets to fiatcurrency using a secondary blockchain and mirrored accounting. Whilevarious exemplary embodiments of the disclosed system and method havebeen described above it should be understood that they have beenpresented for purposes of example only, not limitations. It is notexhaustive and does not limit the disclosure to the precise formdisclosed. Modifications and variations are possible in light of theabove teachings or may be acquired from practicing of the disclosure,without departing from the breadth or scope.

What is claimed is:
 1. A method for conversion of digital assets to fiatcurrency using a secondary blockchain and mirrored accounting,comprising: receiving transaction data corresponding to a firstblockchain transaction processed using a first blockchain, thetransaction data including at least a payer identifier, a recipientidentifier, and a blockchain currency amount; determining a fiatcurrency amount based on at least the blockchain currency amount;generating a second blockchain transaction, the second blockchaintransaction including at least an unspent transaction output, adestination address associated with the payer identifier, and one of theblockchain currency amount and the fiat currency amount; transmittingthe second blockchain transaction to a second blockchain; and initiatinga transfer for the fiat currency amount from a first transaction accountto a second transaction account, the second transaction account beingassociated with the payer identifier.
 2. The method of claim 1, whereinthe first blockchain is a public blockchain, and the second blockchainis a permissioned blockchain.
 3. The method of claim 1, furthercomprising: identifying the second transaction account based on thepayer identifier.
 4. The method of claim 1, further comprising: storinga private key of a cryptographic key pair; and generating a digitalsignature using the private key, wherein the digital signature isincluded in the second blockchain transaction.
 5. The method of claim 4,wherein the private key is associated with the first transactionaccount.
 6. The method of claim 1, further comprising: generating a newblock for the second blockchain, the new block including at least ablock header and one or more new blockchain transactions, the one ormore new blockchain transactions including at least the secondblockchain transaction.
 7. The method of claim 6, further comprising:transmitting the generated new block to one or more nodes in ablockchain network, wherein confirming addition of the second blockchaintransaction to the second blockchain includes receiving a confirmationmessage from a majority of the one or more nodes in the blockchainnetwork.
 8. The method of claim 1, further comprising: executing a queryon an account database based on the payer identifier, the accountdatabase including one or more account profiles; and identifying anaccount profile of the one or more account profiles associated with thepayer identifier.
 9. The method of claim 1, further comprising:receiving a request for a blockchain address from a computing device;and generating a blockchain address using a public key of a blockchainwallet associated with the first blockchain.
 10. The method of claim 1,wherein the destination address associated with the payer identifier inthe second blockchain transaction is a mirror account of a blockchainwallet associated with the payer identifier on the first blockchain. 11.A system for conversion of digital assets to fiat currency using asecondary blockchain and mirrored accounting, comprising: a computingdevice including a receiver receiving transaction data corresponding toa first blockchain transaction processed using a first blockchain, thetransaction data including at least a payer identifier, a recipientidentifier, and a blockchain currency amount, a non-transitorycomputer-readable storage medium having program instructions embodiedtherewith, the program instructions executable by a processor to causethe processor to perform the steps of: determining a fiat currencyamount based on at least the blockchain currency amount, generating asecond blockchain transaction, the second blockchain transactionincluding at least an unspent transaction output, a destination addressassociated with the payer identifier, and one of the blockchain currencyamount and the fiat currency amount, and transmitting the secondblockchain transaction to a second blockchain, and initiating a transferfor the fiat currency amount from a first transaction account to asecond transaction account, the second transaction account beingassociated with the payer identifier.
 12. The system of claim 11,wherein the first blockchain is a public blockchain, and the secondblockchain is a permissioned blockchain.
 13. The system of claim 11,wherein the processor of the computing device identifies the secondtransaction account based on the payer identifier.
 14. The system ofclaim 11, wherein the computing device further includes a memory storinga private key of a cryptographic key pair, and the processor of thecomputing device generates a digital signature using the private key,wherein the digital signature is included in the second blockchaintransaction.
 15. The system of claim 14, wherein the private key isassociated with the first transaction account.
 16. The system of claim11, further comprising: the transmitter of the computing devicetransmits the second blockchain transaction to one or more nodes in thesecond blockchain network, and confirming addition of the secondblockchain transaction to the second blockchain includes receiving, bythe receiver of the computing device, a confirmation message from amajority of the one or more nodes in the second blockchain network. 17.The system of claim 11, wherein the processor of the computing is one ofthe one or more nodes in the second blockchain network.
 18. The methodof claim 11, further comprising: executing a query on an accountdatabase based on the payer identifier, the account database includingone or more account profiles; and identifying an account profile of theone or more account profiles associated with the payer identifier. 19.The method of claim 11, further comprising: receiving a request for ablockchain address from a computing device; and generating a blockchainaddress using a public key of a blockchain wallet associated with thefirst blockchain.
 20. The method of claim 11, wherein the destinationaddress associated with the payer identifier in the second blockchaintransaction is a mirror account of a blockchain wallet associated withthe payer identifier on the first blockchain.